profitability indexForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › profitability indexThis topic has 3 replies, 2 voices, and was last updated 5 years ago by John Moffat.Viewing 4 posts - 1 through 4 (of 4 total) AuthorPosts September 5, 2018 at 7:03 am #471505 ayeshatabaniMemberTopics: 98Replies: 95☆☆Dear sir, When calculating Profitability index both these ways are acceptable right?1) NPV/ initial investment2)(NPV-initial investment)/intial investmentPlease do correct me if i’m wrong. thankyou September 5, 2018 at 2:19 pm #471586 John MoffatKeymasterTopics: 56Replies: 53823☆☆☆☆☆What you have written is correct except that you should have written PV and not NPV in both cases.(PV – initial investment = NPV 🙂 ) September 5, 2018 at 4:24 pm #471621 ayeshatabaniMemberTopics: 98Replies: 95☆☆thankyou! September 5, 2018 at 6:18 pm #471673 John MoffatKeymasterTopics: 56Replies: 53823☆☆☆☆☆You are welcome 🙂AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)The topic ‘profitability index’ is closed to new replies.